Today, outsourcing and offshoring are being used more than ever before. In fact, in 2021 it is predicted that there will be a global offshore outsourcing market of $1 trillion (according to the Outsourcing Institute). This blog post explores the pros and cons associated with outsourcing and offshoring in 2021.
The Pros and Cons of Outsourcing and Offshoring
Outsourcing:
Quality control – outsourcing allows a company to focus on their own core values instead of losing time by managing an outsourced team. This way, they can ensure quality work is being produced.
Cost efficiency - outsourcing also leads to cost benefits for the contracting party as well as reduced overhead costs in terms of administration, management and training (the latter two are expensive). In addition, when you outsource there’s no need to invest in new hardware or software which will cut down your expenses significantly.
Offshoring:
Reduced risk associated with international trade barriers - if you offshore then it is not likely that your business will be constrained by any political events affecting
The pros include: "cost savings," "reduced time-to-market," "more jobs at home," and "innovative ideas." The cons include: "cultural barriers" or language challenges; difficulty matching work style; lack of cultural awareness; the inability for a remote worker to provide face-to-face feedback; and communication problems.
The Cons:
Cultural barriers - language challenges; difficulty matching work style; lack of cultural awareness.
The inability of a remote worker to provide face-to-face feedback.
Conclusion
In conclusion, outsourcing and offshoring in 2021 offer many benefits. However, there are also limitations to this model of work that must be considered before deciding on whether or not the pros outweigh the cons for a particular company.
